OPEN-SOURCE SCRIPT
Adaptive S/R Reversal - RSI Divergence + DCA + BE Stop (5m)
Adaptive S/R Reversal - RSI Divergence + DCA + BE Stop (5m)
DESIGNED FOR: BTCUSDT perpetual · 5-minute timeframe · ONLY.
Other symbols and timeframes have not been validated. The script enforces 5m and warns on any other TF.
A 5-minute mean-reversion strategy for BTCUSDT perpetual futures. Fades touches of yesterday's high/low when momentum confirms via fresh RSI divergence. Averages down once if price moves further against, exits at yesterday's midpoint pre-DCA or a fixed % from first entry post-DCA. Closes flat at 20:00 UTC daily — unless the trade is favorable enough to ride overnight (24-hour hard cap).
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
STRATEGY LOGIC
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
ENTRY (no trend bias)
- LONG: 5m bar low touches prev_day low (within 0.05% zone) AND a fresh BULLISH RSI divergence (price LL, RSI HL) was confirmed within the last 20 bars.
- SHORT: 5m bar high touches prev_day high (within 0.05%) AND a fresh BEARISH RSI divergence (price HH, RSI LH) was confirmed within the last 20 bars.
- Both directions allowed regardless of higher-timeframe trend. The divergence + S/R AND-filter is the edge — neither alone is sufficient.
FILTERS
- Volume confirmation: entry bar volume ≥ 1.1× SMA(20)
- Adaptive S/R range: when prev_day range < 2% (squeeze day), expand lookback to a 2-day rolling H/L band so R:R doesn't collapse
- One cycle per UTC day (configurable up to 5)
- Trade window: entries blocked after 20:00 UTC
DCA
- 1 add at worst_entry × (1 ∓ 0.85%) — total 2 legs per cycle
- Sizing: riskPct of equity is split across DCA levels
- Per-leg quantity capped by leverage × equity / close / dcaLevels
EXITS
- TP (hybrid, default): prev_mid × (1 ∓ 0.1%) pre-DCA → switches to firstEntry × (1 ∓ 4%) once DCA fires (avg entry has shifted, post-DCA leg can ride a wider target).
- SL: worst_entry × (1 ∓ 2%) raw. Once BE arms (+1% favorable from first entry), tightens to firstEntry × (1 ± 0.25%) — locks in real ~0.20% net after fees.
- EOD flatten: closes at 20:00 UTC unless trade is ≥ +1.5% favorable from first entry → holds another 24 hours max.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
BEST CONFIGURATION (defaults — tested on BTC 5m)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Risk per cycle: 6% (4% safer / 8% aggressive)
Leverage cap: 2x (higher amplifies bad days)
DCA levels: 2 (3+ stretches SL distance)
DCA spacing: 0.85% (tighter burns SL faster)
SL below worst entry: 2.0% (pairs with BE-stop ON)
S/R touch zone: 0.05% (wider hurts win rate)
Volume × avg: 1.1× (1.0 lets more in / 1.5 over-filters)
RSI period: 14 (standard)
Pivot left/right: 5 / 5 (3/3 noise / 7/7 misses)
Divergence freshness: 20 bars (~100 min on 5m)
Range floor: 2.0% (below this R:R collapses)
Max lookback (extend): 2 days (3+ rarely improves)
TP mode: hybrid (prev_mid is more conservative)
Post-DCA TP %: 4% (best balance hit-rate vs win-size)
BE trigger: 1.0% (earlier over-triggers)
BE buffer: 0.25% (covers 2× taker fee + slippage)
EOD close hour: 20:00 UTC
Hold-past-EOD: ON @ 1.5%
Cycles per day: 1 (more = N× SL exposure on trend days)
CONSERVATIVE VARIANT (lower DD)
- Risk per cycle: 4% (was 6%)
- Leverage cap: 1.5x (was 2x)
- SL below worst: 1.5% (was 2.0%)
- TP mode: prev_mid (caps upside)
AGGRESSIVE VARIANT (higher return, higher DD)
- Risk per cycle: 8%
- Leverage cap: 3x
- TP post-DCA: 6% (lets winners run further)
- Hold-past-EOD: ON @ 1.0% (more frequent overnight holds)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
⚠ REGIME WARNING — READ BEFORE GOING LIVE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
The strategy is regime-favorable, not regime-robust.
IT WORKS when daily H/L levels consistently revert to the mid (chop, range-bound markets, mean-reverting volatility).
IT LOSES in strong trending markets where price punches through prev_day levels and keeps going — every losing trend day costs a full SL, and the small mean-reversion wins don't pay for them.
DO NOT size up based on a few good weeks. Paper-trade for at least 2-4 weeks across different regimes before deploying real capital. Short-window backtests are real but NOT predictive — they're regime artifacts.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
HOW TO USE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
1. BTCUSDT.P (perp) only — params are tuned to BTC's volatility profile. Spot has different funding/fee structure; alts have different ranges.
2. 5m chart only — script enforces this and warns on other TFs.
3. Paper trade first. Use TV alerts → paper account on Binance Futures testnet, or a dedicated paper-trading bot, for at least 2-4 weeks.
4. Watch the on-chart dashboard (top-right) for live state: position, prev levels, active TP/SL, BE status, EOD hold status.
5. Don't change parameters mid-trade. Re-tune only after a full month of data on a new config.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
WHAT'S PLOTTED
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
- prev_day Low (dim green dotted)
- prev_day High (dim red dotted)
- prev_day Mid / TP target (cyan dotted)
- Active SL (solid red, 2px)
- Active TP (solid cyan, 2px)
- Avg entry (yellow dotted, after DCA fires)
- 1h EMA(20) (purple, visual reference only — not used for entries)
- Entry triangle markers when L1/S1 conditions fire
- Bull/Bear divergence diamonds at the pivot bar
- Top-right dashboard: position, prev levels, UTC hour, TP mode, filled count, BE status, RSI div age, equity, EOD-hold status
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
TESTED + REJECTED (anti-recipes)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
These were tried during development and removed — saving you the experiments:
- Trend bias filter (1h EMA) — blocks 60%+ of valid entries because bias flips against you exactly when price reaches the S/R level.
- RSI anti-extreme filter as primary gate — redundant with divergence.
- Multi-RSI variants (fast 7 / slow 21) — fast fires on noise, slow on stale moves.
- Trailing stop (post-DCA or full trail) — too many false trail-outs near peaks. BE-stop does the job cleaner.
- Wider S/R zone (0.2%) — fires on near-misses, hurts WR.
- SL on candle close (only fire SL when 5m bar closes beyond SL) — saves wick stops but gives more rope on real trends; net negative.
- Multi-cycle per day (2-3 cycles) — same-day re-entries whipsaw on trend days. 1 cycle/day is the validated default.
- Always-in-market flip on every divergence (no S/R touch required) — built and tested; loses. Divergence alone is not an edge.
- Recycling grid sub-strategies — slippage + risk amplification on dip-buy rungs destroy the math.
- Wait-for-HTF-rejection-candle confirm filter — cuts return ~60% for marginal DD improvement.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
DISCLAIMER
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Backtest results don't predict live performance. Slippage, funding fees, exchange downtime, latency, and live order routing all affect real-world returns. The TradingView backtester assumes intra-bar fills that may not happen in live trading without resting orders.
This script is shared for educational and research purposes. Use it as one input in your own due diligence — never as a turn-key money-printer. Past performance is not indicative of future results, especially for a strategy this regime-dependent.
DESIGNED FOR: BTCUSDT perpetual · 5-minute timeframe · ONLY.
Other symbols and timeframes have not been validated. The script enforces 5m and warns on any other TF.
A 5-minute mean-reversion strategy for BTCUSDT perpetual futures. Fades touches of yesterday's high/low when momentum confirms via fresh RSI divergence. Averages down once if price moves further against, exits at yesterday's midpoint pre-DCA or a fixed % from first entry post-DCA. Closes flat at 20:00 UTC daily — unless the trade is favorable enough to ride overnight (24-hour hard cap).
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
STRATEGY LOGIC
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
ENTRY (no trend bias)
- LONG: 5m bar low touches prev_day low (within 0.05% zone) AND a fresh BULLISH RSI divergence (price LL, RSI HL) was confirmed within the last 20 bars.
- SHORT: 5m bar high touches prev_day high (within 0.05%) AND a fresh BEARISH RSI divergence (price HH, RSI LH) was confirmed within the last 20 bars.
- Both directions allowed regardless of higher-timeframe trend. The divergence + S/R AND-filter is the edge — neither alone is sufficient.
FILTERS
- Volume confirmation: entry bar volume ≥ 1.1× SMA(20)
- Adaptive S/R range: when prev_day range < 2% (squeeze day), expand lookback to a 2-day rolling H/L band so R:R doesn't collapse
- One cycle per UTC day (configurable up to 5)
- Trade window: entries blocked after 20:00 UTC
DCA
- 1 add at worst_entry × (1 ∓ 0.85%) — total 2 legs per cycle
- Sizing: riskPct of equity is split across DCA levels
- Per-leg quantity capped by leverage × equity / close / dcaLevels
EXITS
- TP (hybrid, default): prev_mid × (1 ∓ 0.1%) pre-DCA → switches to firstEntry × (1 ∓ 4%) once DCA fires (avg entry has shifted, post-DCA leg can ride a wider target).
- SL: worst_entry × (1 ∓ 2%) raw. Once BE arms (+1% favorable from first entry), tightens to firstEntry × (1 ± 0.25%) — locks in real ~0.20% net after fees.
- EOD flatten: closes at 20:00 UTC unless trade is ≥ +1.5% favorable from first entry → holds another 24 hours max.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
BEST CONFIGURATION (defaults — tested on BTC 5m)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Risk per cycle: 6% (4% safer / 8% aggressive)
Leverage cap: 2x (higher amplifies bad days)
DCA levels: 2 (3+ stretches SL distance)
DCA spacing: 0.85% (tighter burns SL faster)
SL below worst entry: 2.0% (pairs with BE-stop ON)
S/R touch zone: 0.05% (wider hurts win rate)
Volume × avg: 1.1× (1.0 lets more in / 1.5 over-filters)
RSI period: 14 (standard)
Pivot left/right: 5 / 5 (3/3 noise / 7/7 misses)
Divergence freshness: 20 bars (~100 min on 5m)
Range floor: 2.0% (below this R:R collapses)
Max lookback (extend): 2 days (3+ rarely improves)
TP mode: hybrid (prev_mid is more conservative)
Post-DCA TP %: 4% (best balance hit-rate vs win-size)
BE trigger: 1.0% (earlier over-triggers)
BE buffer: 0.25% (covers 2× taker fee + slippage)
EOD close hour: 20:00 UTC
Hold-past-EOD: ON @ 1.5%
Cycles per day: 1 (more = N× SL exposure on trend days)
CONSERVATIVE VARIANT (lower DD)
- Risk per cycle: 4% (was 6%)
- Leverage cap: 1.5x (was 2x)
- SL below worst: 1.5% (was 2.0%)
- TP mode: prev_mid (caps upside)
AGGRESSIVE VARIANT (higher return, higher DD)
- Risk per cycle: 8%
- Leverage cap: 3x
- TP post-DCA: 6% (lets winners run further)
- Hold-past-EOD: ON @ 1.0% (more frequent overnight holds)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
⚠ REGIME WARNING — READ BEFORE GOING LIVE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
The strategy is regime-favorable, not regime-robust.
IT WORKS when daily H/L levels consistently revert to the mid (chop, range-bound markets, mean-reverting volatility).
IT LOSES in strong trending markets where price punches through prev_day levels and keeps going — every losing trend day costs a full SL, and the small mean-reversion wins don't pay for them.
DO NOT size up based on a few good weeks. Paper-trade for at least 2-4 weeks across different regimes before deploying real capital. Short-window backtests are real but NOT predictive — they're regime artifacts.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
HOW TO USE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
1. BTCUSDT.P (perp) only — params are tuned to BTC's volatility profile. Spot has different funding/fee structure; alts have different ranges.
2. 5m chart only — script enforces this and warns on other TFs.
3. Paper trade first. Use TV alerts → paper account on Binance Futures testnet, or a dedicated paper-trading bot, for at least 2-4 weeks.
4. Watch the on-chart dashboard (top-right) for live state: position, prev levels, active TP/SL, BE status, EOD hold status.
5. Don't change parameters mid-trade. Re-tune only after a full month of data on a new config.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
WHAT'S PLOTTED
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
- prev_day Low (dim green dotted)
- prev_day High (dim red dotted)
- prev_day Mid / TP target (cyan dotted)
- Active SL (solid red, 2px)
- Active TP (solid cyan, 2px)
- Avg entry (yellow dotted, after DCA fires)
- 1h EMA(20) (purple, visual reference only — not used for entries)
- Entry triangle markers when L1/S1 conditions fire
- Bull/Bear divergence diamonds at the pivot bar
- Top-right dashboard: position, prev levels, UTC hour, TP mode, filled count, BE status, RSI div age, equity, EOD-hold status
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
TESTED + REJECTED (anti-recipes)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
These were tried during development and removed — saving you the experiments:
- Trend bias filter (1h EMA) — blocks 60%+ of valid entries because bias flips against you exactly when price reaches the S/R level.
- RSI anti-extreme filter as primary gate — redundant with divergence.
- Multi-RSI variants (fast 7 / slow 21) — fast fires on noise, slow on stale moves.
- Trailing stop (post-DCA or full trail) — too many false trail-outs near peaks. BE-stop does the job cleaner.
- Wider S/R zone (0.2%) — fires on near-misses, hurts WR.
- SL on candle close (only fire SL when 5m bar closes beyond SL) — saves wick stops but gives more rope on real trends; net negative.
- Multi-cycle per day (2-3 cycles) — same-day re-entries whipsaw on trend days. 1 cycle/day is the validated default.
- Always-in-market flip on every divergence (no S/R touch required) — built and tested; loses. Divergence alone is not an edge.
- Recycling grid sub-strategies — slippage + risk amplification on dip-buy rungs destroy the math.
- Wait-for-HTF-rejection-candle confirm filter — cuts return ~60% for marginal DD improvement.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
DISCLAIMER
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Backtest results don't predict live performance. Slippage, funding fees, exchange downtime, latency, and live order routing all affect real-world returns. The TradingView backtester assumes intra-bar fills that may not happen in live trading without resting orders.
This script is shared for educational and research purposes. Use it as one input in your own due diligence — never as a turn-key money-printer. Past performance is not indicative of future results, especially for a strategy this regime-dependent.
نص برمجي مفتوح المصدر
بروح TradingView الحقيقية، قام مبتكر هذا النص البرمجي بجعله مفتوح المصدر، بحيث يمكن للمتداولين مراجعة وظائفه والتحقق منها. شكرا للمؤلف! بينما يمكنك استخدامه مجانًا، تذكر أن إعادة نشر الكود يخضع لقواعد الموقع الخاصة بنا.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
نص برمجي مفتوح المصدر
بروح TradingView الحقيقية، قام مبتكر هذا النص البرمجي بجعله مفتوح المصدر، بحيث يمكن للمتداولين مراجعة وظائفه والتحقق منها. شكرا للمؤلف! بينما يمكنك استخدامه مجانًا، تذكر أن إعادة نشر الكود يخضع لقواعد الموقع الخاصة بنا.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.